MNI BRIEF: Cuts Should Be Timely But Cautious - Buba's Nagel

MNI BRIEF: ECB Policy Decisions Based On Broad Analysis- Lane

MNI BRIEF: Less Than Half Canada Firms See Inflation Obstacle

MNI China Daily Summary: Monday, November 25

MNI: China CFETS Yuan Index Up 0.01% In Week of Nov 22

MNI: PBOC Net Injects CNY76.7 Bln via OMO Monday

EZ/UK T-Bill Calendar: 2/3-Month ATB Auction on Tuesday

MNI: BELGIUM NOV BNB BUSINESS SURVEY -11.1

EZ/UK Bond Supply Calendar: Gilt Syndi; IT, DE Due on Tuesday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD: Dollar Tracking For Its Best Week Since April, Amid Multiple Supports

USD
USNorth AmericaBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

At this stage, the USD BBDXY index is up over a little over 1% for this week. This would be the USD's first weekly gain since the end of August and best week since mid April. 

  • A combination of factors have aided the USD over this period. The general tone to data outcomes has been more positive, on balance. The chart below plots the Citi US activity surprise index against the USD BBDXY. The surprise index is at multi month highs back to early May.
  • This, along with Powell's recent rhetoric on not being in a hurry to ease quickly, has clearly helped the USD/yield backdrop. We have another important litmus test tonight with US NFP, but all else equal, any positive surprises should benefit the USD.
  • Other factors have helped the USD in terms of central bank outlooks this past week, with BoE, BoJ and RBNZ leaning more dovish. 

Fig 1: Citi US EASI Versus USD BBDXY Index 

Keep reading...Show less
281 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

At this stage, the USD BBDXY index is up over a little over 1% for this week. This would be the USD's first weekly gain since the end of August and best week since mid April. 

  • A combination of factors have aided the USD over this period. The general tone to data outcomes has been more positive, on balance. The chart below plots the Citi US activity surprise index against the USD BBDXY. The surprise index is at multi month highs back to early May.
  • This, along with Powell's recent rhetoric on not being in a hurry to ease quickly, has clearly helped the USD/yield backdrop. We have another important litmus test tonight with US NFP, but all else equal, any positive surprises should benefit the USD.
  • Other factors have helped the USD in terms of central bank outlooks this past week, with BoE, BoJ and RBNZ leaning more dovish. 

Fig 1: Citi US EASI Versus USD BBDXY Index 

Keep reading...Show less